Top Stories

U.S. And China Trade Talks On Thursday To Decide On New Tariffs

Markets fluctuate anxiously as uncertainty mounts over the trade deal.

On Wednesday, President Donald Trump has claimed that China “broke the deal” at a rally in Florida. This statement has brought down hopes of a trade deal taking place. The new tariffs will take off at midnight and worries mount across the globe.

However, a team of officials from China will be meeting officials from Washington. The Chinese team is headed by the country’s Vice Premier Liu He. He will be dining with the U.S. Trade Representative Robert Lighthizer on Thursday evening. Liu will not be meeting President Trump on Thursday

However, China has claimed that it would retaliate if tariffs were hiked. China is still trying to strike a deal with the U.S., as the team holds talks with the United States on Thursday.

Stocks which have direct exposure to Chinese trade will be hit hard if tariffs are imposed again. Stocks like Apple, Starbucks, Boeing, and Nike will be worst hit. However, some safe stocks like Google, Amazon, and Facebook are not directly linked with China and may not be affected much. However, some stocks like Intel and Qorvo may witness wild swings along with Chinese companies like Alibaba.

As the tariff deadline approaches, traders wait with apprehension. There are expectant bulls with long positions who anticipate positive news from Thursday’s talk. But there are a number of bears who are holding short positions, accumulating short positions with every tweet from President Trump, claiming that tariffs will be further imposed.

Analysts Ed Mills from Raymond James says that Thursday will be a “pivotal day”. The Chinese will try to delay the increase in tariffs on Friday so that they can continue to negotiate.

However, the Dow Jones Industrial Average was down by 321 points, the S&P 500 down by 1.25 percent and the Nasdaq down by 1.6 percent on Thursday.

Tags

Kevin Sword

Kevin is a German-resident and to pursue higher studies he went to the U.S. for acquiring graduation in Astronomy. He had been doing various IT and computer languages-related courses along with his Bachelor’s studies. The passion for grasping progressively about science-based topics such as space launches, missions, discoveries, and space events have pushed him to pursue content writing. Previously, he was working as a content editor in a news magazine publishing platform.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Close